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Article on a push to regulate Fracking fluids in NY

Colo., NY reps want regulation of gas 'fracking'

By JUDITH KOHLER, Associated Press Writer Judith Kohler, Associated Press Writer

DENVER – The push to put a widely used oil and gas drilling process under federal oversight could gain ground with a new administration in place and concerns about the development of huge gas fields in the East.

Democratic Reps. Diana DeGette of Colorado and Maurice Hinchey of New York plan to reintroduce a bill that would repeal a ban on regulating the process, called hydraulic fracturing, under the federal Safe Drinking Water Act.

The exemption was part of the 2005 energy bill and followed an Environmental Protection Agency report that found there was little or no threat to underground drinking water from the process.

Critics blame the process, popularly known as "fracking," for health and environmental problems in oil and gas fields in the Rockies and elsewhere. The industry insists fracking is clean and crucial to energy development.

The bill, expected to be introduced next week, also would require companies to disclose what's in fracking fluids. Rep. Jared Polis, D-Colo., is a co-sponsor.

Fracking involves injecting liquids, sand and chemicals underground to force open channels in tight sand and rock formations so that oil and gas will flow. The provision exempting it from federal oversight is called the "Halliburton loophole" by foes.

Halliburton, an oil services company, pioneered hydraulic fracturing. Former Vice President Dick Cheney, who once ran Halliburton, tightly guided the George W. Bush administration's energy policy.

The Obama administration has bolstered environmentalists' hopes that the oversight ban will end. EPA administrator Lisa Jackson said during a May 21 tour of a gas field in southwest Wyoming that the government must be sure it's doing all it can to ensure that fracking is safe.

California Democratic Rep. Henry Waxman, selected to head the House Energy and Commerce Committee, has long backed tougher oversight of fracking.

The industry reads the same signals. Trade groups representing independent oil and gas producers formed a coalition, Energy in Depth, to respond to calls for more regulation. They've lined up support from lawmakers in energy-producing states. Legislators in Wyoming, a major gas producer, passed a resolution this year asking Congress to maintain the exemption for fracking.

"We looked at the landscape and saw a lot of potential changes on the horizon," Energy in Depth spokesman Chris Tucker said.

Nine out of 10 wells drilled nationwide are fracked, Tucker said. The industry believes fracking is crucial to producing gas from the tight sands of the Rockies as well as gas shale reserves such as the Marcellus Shale that underlies much of New York state, Ohio, Pennsylvania and West Virginia.

Studies commissioned by the coalition said that proposed changes in regulations, including the fracking exemption, could force the closure of more than half of oil wells and one-third of gas wells. They would cost the federal government $4 billion in revenue and the states a total of $785 million, the studies say.

The industry says fracking occurs far below groundwater tapped for drinking. Cement casings around bore holes prevent exposure, companies say.

"I think it's a worthwhile thing to note that in 60 years of use, there are no studies tying hydraulic fracturing to contamination," Tucker said.

Gwen Lachelt of the Colorado-based Oil and Gas Accountability Project, which works with communities across the country, said there are no documented cases of contamination because nobody's investigating.

"The practice is completely exempt from any regulation," Lachelt said.

People living near gas wells in parts of the Rockies that experienced record gas drilling in recent years have complained about bad-tasting well water, well blowouts when fracking is going on and health problems they believe are caused by methane or chemicals from gas production.

In some cases, companies have bought out or compensated the affected landowners. In others, they say no connection was found to their operations.

An emergency room nurse in Durango in southwest Colorado who became gravely ill last year after treating a gas-field worker drenched in fluids said she had trouble getting a breakdown of the fluid's ingredients.

At least five Colorado cities and counties have passed resolutions endorsing more regulation.

"I don't have any problems with the fracking process per se, it's the chemicals they use in the process," said Wally White, a commissioner in La Plata County, a big gas-producing area.

Companies say they use mostly sand and water in fracking, but also acknowledge using chemicals and lubricants to help coax the oil and gas out. They guard their fracking recipes as proprietary information.

The industry says the chemicals are highly diluted.

DeGette said during a conference call Thursday that chemicals known to have been used in fracking include diesel fuel, industrial solvents and benzene, known to cause cancer.

The 2004 EPA report on the effects on groundwater from fracking coal-bed methane wells was a truncated version of what it was supposed to be, Lachelt said.

"Phase two of the study would have monitored water quality in the proximity of fracking operations, but we never got that far," Lachelt said.

Wes Wilson, a veteran engineer in the Denver EPA office, disputed the report's findings. He went public in 2004 alleging the study was incomplete and its methodology inconsistent with other EPA studies.

"There's never been a rigorous scientific study on whether fracking contaminates aquifers," said Geoffrey Thyne of the Enhanced Oil Recovery Institute, based at the University of Wyoming.

Thyne said he has read many technical papers on fracking as part of a study he did as an associate professor at the Colorado School of Mines. The 2004 EPA report didn't settle the issue for Thyne, who stressed he wasn't speaking for the college.

Thyne said he would prefer comprehensive studies and monitoring over federal regulation of fracking.

"But if the industry position stays the same, `No, we have to keep the exemption,' then I would have to support putting them back" under federal regulation, Thyne said.
 
From Sunday's Press & Sun Bulletin:

Natural gas industry to disclose contents of solution used in drilling
By Tom Wilber • twilber@gannett.com • Staff Writer • June 7, 2009


The natural gas industry will provide state regulators with the recipe for a solution drillers inject into the ground to stimulate gas production, a spokesman said Saturday.

Industry officials have long resisted demands by activists to make the information public because they consider it a trade secret.

Jim Smith, a spokesman for the Independent Oil & Gas Association of New York State, said companies could lose a competitive advantage by revealing the concentrations and contents of their solutions, but would provide that information to the state Department of Environmental Conservation anyway.

"We have a great record in this industry, and we will continue that," he said.

During hearings last summer, advocates insisted state officials look closely at the process, called hydro-fracturing, that injects millions of gallons of chemical solution into the ground and produces similar quantities of waste-water to extract gas from shale formations.

Energy companies are waiting for the state to update environmental regulations before tapping the gas-rich Marcellus Shale running under the Southern Tier and throughout the Appalachian Basin.

Meanwhile, Reps. Maurice Hinchey, D-Hurley, and Diana DeGette, D-Colo., are introducing bills that would mandate full public disclosure of contents and concentrations in hydro-fracturing fluid.
 
Studies commissioned by the coalition said that proposed changes in regulations, including the fracking exemption, could force the closure of more than half of oil wells and one-third of gas wells. They would cost the federal government $4 billion in revenue and the states a total of $785 million, the studies say.

The reporter leaves out a very important fact here. The only reason this move would cost jobs is because Halliburton is threatening to close facilities rather than disclose the chemicals it uses in the fracking process under regulation. Until the 2005 Energy Policy Act it was standard practice for any operation involving the underground injection of chemicals to disclose the nature and identity of the chemicals to state and federal regulators under the Safe Drinking Water Act. Halliburton is now using the threat of suspending drilling operations as leverage to avoid having to disclose this information that it would be required to disclose anyway if it weren't for the now-discredited 2004 EPA "Study" that Congress relied on when carving out this exemption. :down:
 
You gotta love the oil industry execs here. "We can't tell you what's in the fracking fluid because it's our secret". Funny, I don't hear any gas drilling companies out there saying "we can't drill into the Marcellus Shale because we have no idea what chemicals to use". Some secret. The only thing that is secret is what a mess these fluids are and the fact is, some will leach into ground water - some already have in fact.

Bottom line is we need oversight on this type of drilling. Because of the massive scale that is planned for the Marcellus Shale, we can't just stick our collective heads in the sand.
 
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So much for your statements. It's the other gas companies that they don't want to know.

That debate is a red herring. Trade secret protections don't apply to requests for information from the government. The companies are arguing a moot point to score political points and deflect attention from real debate.

According to the Supreme Court, trade secrets are not exempt from disclosure under state and federal statutes. This is because the government is not engaged in private enterprise and thus there can be no competitive disadvantage suffered when the company is required to disclose the information to the government.

If the company fears that it may suffer a competitive disadvantage, they may properly (under both state and federal law) apply for trade secret protection which prevents the regulatory body (EPA or DEC) from disclosing the protected information to the public. If the company can show in an administrative hearing that the information is actually a trade secret then the governmental body can be sued for damages if the information is released. However, this does not effect the obligation of the company to disclose the information to the government for purposes of regulation.

So basically, the companies are arguing for a right that they don't have anyway - the right to withhold trade secrets from the regulatory bodies that oversee their activities.
 
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That debate is a red herring. Trade secret protections don't apply to requests for information from the government. The companies are arguing a moot point to score political points and deflect attention from real debate.

According to the Supreme Court, trade secrets are not exempt from disclosure under state and federal statutes. This is because the government is not engaged in private enterprise and thus there can be no competitive disadvantage suffered when the company is required to disclose the information to the government.

If the company fears that it may suffer a competitive disadvantage, they may properly (under both state and federal law) apply for trade secret protection which prevents the regulatory body (EPA or DEC) from disclosing the protected information to the public. If the company can show in an administrative hearing that the information is actually a trade secret then the governmental body can be sued for damages if the information is released. However, this does not effect the obligation of the company to disclose the information to the government for purposes of regulation.

So basically, the companies are arguing for a right that they don't have anyway - the right to withhold trade secrets from the regulatory bodies that oversee their activities.

Thanks Dr. Bus Token's.. I was just to respond to it myself.
 
Isnt Halburton the company that could not even sell clean drinking water to our troops overseas? Wasnt it Halburton that faced a huge suit after their unregulated "Private Contractors" wasted a whole pile of civillians in a traffic circle in Bagdad? Are we supposed to trust them to inject unknown chemicals into our land?

Just a thought.
 
So much for your statements. It's the other gas companies that they don't want to know.

Natural gas industry to disclose contents of solution used in drilling.

The natural gas industry will provide state regulators with the recipe for a solution drillers inject into the ground to stimulate gas production, a spokesman said Saturday.

http://www.pressconnects.com/article/20090607/NEWS01/906070378/Natural+gas+industry+to+disclose+contents+of+solution+used+in+drilling

That's crap, the real reason is that they don't want the public to find out that they are using toxic chemicals to penetrate the rock/shale.

It's all about the MONEY!!!!!

As always, not naive.

Mel
 
So much for your statements. It's the other gas companies that they don't want to know.

I don't know, I'm skeptical of their claim on that and think it's likely BS. As if most of the gas exploration companies don't already know what chemical mixes to use! I tend to believe it had more to do with not wanting to let the public & regulatory agencies know exactly how many and specifically what toxins they will inevitably poison the ground and watersheds with. The less specifics known, the less oversight or special permits/treatment needed probably. Less public/government hassle and more profit for them.
 
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It's obviously BS. As I pointed out above not only is there no legal justification for their position, but the companies' objections are mooted by existing law protecting trade secrets. So not only is it BS it's double BS. The companies invoke the idea of trade secrets because it's an easily identifiable right that the public and the asshat politicians can recognize and get confused over. Call it smoke and mirrors because that's what it is.

There's a pretty basic reason for not wanting to disclose the information - accountability. Look at what's going on out in Colorado for example. People are winding up with strange contaminants (benzene, methane, and other stuff) in their well water. The state doesn't know where it's coming from and the drilling companies disclaim liability and blame it on natural "seeps" (which do in fact happen).

The state can't tell if the companies' statements are accurate or if the cause might be fracking solution entering the aquifers because they don't know what chemicals the fracking solutions contain. This is because Colorado does not require disclosure to state regulators. If the state doesn't know what chemicals are being used, then the state can't make a connection between the contamination and the drilling operations. If there is one to be made.

Furthermore, there has been very little study of the effects of the hydro-fracturing process since the EPA's report in 2004. The industry is desperately trying to keep it that way.
 
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